Research Of Chinese Working Capital Management Performance Evaluation Of The Electric Appliance Manufacturing Enterprises

Working capital is not only the most changeable but also the most dynamic part of corporate assets. So that, the effective management of working capital can ensure the Smooth connection of supply, production,and marketing and make the enterprises develop sustainably and stably.At present, the shortage of working capital affects the speed of Chinese electric appliance manufacturing enterprises development seriously. Therefore, it’s crucial important to strengthen the financial management of Chinese electric appliance manufacturing enterprises, particularly to strengthen the management of working capital.By reviewing the foreign and domestic literatures,this paper constructs an evaluation system of working capital management performance on the basis of elements and channels. The working capital management performance evaluation system not only follows the traditional system based on elements, but also absorbs the frontier theory based on channels, which is proposed by Zhuquan Wang. The new evaluation system takes three single elements evaluation into consideration including inventory, account receivable and account payable. What’s more, working capital items occurred in production and operation processes are also considered in this system. Therefore, the system can evaluate the working capital management of electric appliance manufacturing enterprises from the point to the surface, and can also fully reflect the working capital management position of the enterprises.On the basis of theoretical studying, this paper chooses Gree Electric Appliances. Inc. of ZhuHai as a case of electric appliances manufacturing listed companies, and then evaluates the working capital management performance of Gree based on elements and channels.The result shows that Gree’s inventory management is much better than others. What’s more Gree’s purchase channel, produce channel, and market channel are all superior to the other electric appliance manufacturing enterprises. Finally this paper offers some proposals to improve Chinese electric appliance manufacturing enterprises working capital management performance. I hope these suggestions will be useful for the enterprises to improve their working capital management performance.